Persimmon encouraged by strong start in 2011

| March 2, 2011 | 0 Comments
Persimmon encouraged by strong start in 2011

Persimmon, which is the UK’s largest housebuilder by market value, has announced full-year underlying pre-tax profit jumped to £95.5 million compared with £7 million in the previous year.

The company said it sold more homes at higher prices and it is “encouraged” by the group’s performance in the first two months of the year, with visitor numbers up 10% on the year.

Meanwhile, the company said the average house sale price rose by 4% to £172,475.

Its comments reflect those from rivals Barratt and Redrow which have both experienced a strong uptake in sales since the start of 2011.

However, despite the positive comments and results, economists still believe the housing market will remain subdued during 2011 and housebuilders can expect a challenging time.

The majority of economists expect house prices to fall steadily throughout 2011 – particularly in light of the uncertainty regarding the economy and the Government’s spending cuts.

Furthermore, the ongoing mortgage rationing by lenders means the housing market will remain muted this year.

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